Arizona Contract Writing Practice Flashcards

A collection of vocabulary flashcards covering the essential legal and practical terms for Arizona real estate contract writing, including constitutional amendments, contract types, and agency responsibilities.

Article 26 (XXVI)

A section of the Arizona State Constitution that grants licensed real estate brokers and salespeople the right to draft or fill out and complete any and all instruments incident to a real estate transaction without charge.

State Bar of Arizona v. Arizona Land Title & Trust Company, 1961

The Arizona Supreme Court case where judges ruled that real estate agents and title companies were acting like lawyers without a license; this led to the creation of the 26th Amendment.

Limited practice of law

The unique right in Arizona allowing licensed real estate agents to help write legal papers for property ownership transfers without being licensed attorneys.

Promisor

The person making a promise in a contract.

Promisee

The person to whom a promise is made in a contract.

Enforceable

A term meaning that a court can force someone to do what they promised or penalize them with money for not keeping that promise.

Contractual capacity

The legal ability to enter into a contract, requiring parties to be of the legal age of majority ($18$ in Arizona), of sound mind, and not incarcerated or a ward of the state.

Valuable consideration

A type of consideration that involves money or property exchanged for something else.

A type of consideration based on love or affection, such as a property given as a gift.

Good consideration

Voluntary alienation

The process where a grantor voluntarily transfers a title to property with the consent of the receiving party.

Warranty deed

A document often used in Arizona to transfer property ownership that cites consideration as part of its boilerplate text.

Emancipated minor

A person at least $16$-years-of-age who has been declared by a judge to be legally independent and is a resident of Arizona.

Void contract

A contract that is treated as if it never existed, often because it was for an illegal purpose or one party lacked the capacity to sign.

Voidable contract

A contract that is usually valid, but allows one party the choice to cancel it if they were pressured, misled, or a minor.

Expressed contract

A contract made using words, either spoken (oral) or written.

Real Estate Employment Agreement

A specific written agreement in Arizona by which a real estate broker is entitled to compensation for services rendered.

Unilateral contract

A promise where only one person has to do something, such as an option contract where the seller is locked into selling if the buyer chooses to buy.

Bilateral contract

Bilateral contract

Executory contract

The state of a contract after all parties have signed it but while the terms and conditions are still in the process of being fulfilled.

Dual agency

A situation where one brokerage represents both the buyer and the seller in the same transaction, requiring written informed consent from both parties.

Designated agency

An arrangement where a brokerage assigns one agent to the seller and a different agent to the buyer to help avoid conflicts of interest.

Exclusive authorization and right to sell listing

The most common residential listing contract in Arizona where the brokerage gets paid if the house sells during the listing term regardless of who finds the buyer.

Metes and bounds

A legal land description system that uses directions and distances to map property lines.

Lot, block, and tract

A legal land description system that refers to recorded subdivision maps.

Listing term

The timeframe for a listing agreement, which in Arizona cannot exceed a maximum of one year.

Earnest money

A deposit paid upfront by a buyer to show they are serious about an offer and to discourage buyer default.

Close of escrow date

The target date set in the purchase contract for the deal to be finalized and the buyer to become the homeowner.

Arizona Residential Landlord and Tenant Act (ARLTA)

The Arizona statutory law that defines rental dwellings and the rights and responsibilities of landlords and tenants.

Lessor

The landlord or owner of a property who enters into a lease agreement.

Lessee

The tenant or renter of a property who enters into a lease agreement.

Reversionary right

The right of a landlord to have the rental property returned to their possession at the end of a lease term.

$1.5$ times the monthly rental

The maximum security deposit amount allowed under the ARLTA.

Completion of purpose

The successful fulfillment of a contract where all parties have done exactly what they promised.

Curable breach

A mistake or violation in a contract that can still be fixed or repaired by the breaching party.

Three-day cure notice

A formal warning paper required in Arizona that notifies a party of a breach and gives them three days to fix it before the agreement is ended.

Compensatory damages

Money paid to a person who was harmed by a breach to pay them back for what they actually lost.

Liquidated damages

A pre-fixed amount of money specified in the contract to be paid if a party breaks a specific provision.

Suit for specific performance

A legal action asking a judge to force a party to perform exactly what they promised, common when a seller refuses to sell a house as agreed.

Fiduciary duties

The set of responsibilities a real estate professional owes a client, comprising loyalty, obedience, disclosure, confidentiality, reasonable care/diligence, and accountability.

$5$\,years

The mandatory retention period for Arizona brokerages to keep transaction records like purchase contracts, listing agreements, and leases.

$10$\,days

The period within which an Arizona designated broker must review and initial listing agreements, purchases, or nonresidential leases from the date of execution.